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Succession outside the Family

One way of keeping the company in family ownership is to employ external management.

As an entrepreneur, managing director and shareholder, the topic of company succession is an essential part of company management. At least 3-5 years should be planned for a holistic company succession – especially if you have not yet decided on a specific succession option.

If the company is to remain in family ownership and no successor within the family can be found, an external manager can be appointed.

The collaboration between the external manager and the family business harbours both challenges and great opportunities. Clear roles, responsibilities and communication are crucial in this case. The managing director must handle the change with confidence in order to avoid the external managing director withdrawing. They must familiarise themselves with the owner’s strategy, have room for new ideas and be aware that it is not their company. Trust, pragmatism, clear expectations and structure are key factors for successful collaboration.

Close coordination between the external manager and the owner family is essential to ensure a smooth collaboration. Open communication and respectful interaction will strengthen trust between the parties. It is important to set up regular feedback sessions to discuss progress and address any challenges or conflicts early on.

In addition, continuity plays a crucial role. The transfer of knowledge about the company’s history, values and best business practices is essential to preserve the company’s identity while creating space for innovative approaches. This exchange of experience and new ideas can lead to a fruitful exchange that takes the company into the future.

An open attitude towards change and a willingness to continuously adapt are key qualities for both the external manager and the owner family. Through this adaptability and joint effort, they can build a successful partnership that ensures long-term business success.

THE MAK`ED TEAM has experience in company succession and the use of external managers and supports companies in generational change.